Enterprise Value to EBITDA (EV/EBITDA)
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- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Applied Materials Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
- Net Income
- The net income exhibits a consistent upward trend across the analyzed periods. Starting at 2,706 million USD in 2019, it increases steadily each year, reaching 7,177 million USD by 2024. The growth is substantial, more than doubling over five years, indicating robust profitability improvements.
- Earnings Before Tax (EBT)
- EBT shows a similar positive trajectory, rising from 3,269 million USD in 2019 to 8,152 million USD in 2024. The increase is marked particularly between 2020 and 2021, where there is a significant jump from 4,166 to 6,771 million USD, followed by more moderate growth through 2024.
- Earnings Before Interest and Tax (EBIT)
- EBIT follows the ascending pattern observed in net income and EBT, starting at 3,506 million USD in 2019 and increasing consistently to 8,399 million USD in 2024. The data reflects steady operational profitability growth without interruption throughout the analyzed timeframe.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA also continues the upward trend, rising from 3,869 million USD in 2019 to 8,791 million USD in 2024. The increase indicates enhanced cash earnings capacity over time, supporting improving operational efficiency and revenue scale.
- General Trends and Insights
- Across all metrics—net income, EBT, EBIT, and EBITDA—there is a clear and sustained growth trajectory over the six-year period. The growth rates suggest effective cost management, increasing revenue, and possibly expanding market share or pricing power. The company demonstrates improved profitability at every earnings level, from operational to net levels. No fluctuations or declines are noted, reflecting a stable financial performance enhancement year over year.
Enterprise Value to EBITDA Ratio, Current
Applied Materials Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-10-27).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Applied Materials Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| EV/EBITDA, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a notable upward trend from 2019 to 2024, increasing from approximately 56.5 billion USD to around 134.6 billion USD. This growth is not entirely linear, with a dip observed in 2022 from the previous year's peak, decreasing from about 129.8 billion USD in 2021 to 91.3 billion USD in 2022, before rebounding substantially in the following two years to exceed prior highs.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibits a consistent upward trajectory throughout the period. Starting at about 3.9 billion USD in 2019, it steadily increases year over year, reaching approximately 8.8 billion USD by 2024. Unlike enterprise value, EBITDA does not display any decline at any point and demonstrates continuous operational earnings growth.
- EV/EBITDA Ratio
- The EV/EBITDA ratio fluctuates considerably over the years. It starts at 14.6 in 2019, rises to a peak of 17.54 in 2021, indicating a relatively higher valuation per unit of earnings before interest, tax, depreciation, and amortization. In 2022, the ratio decreases significantly to 11.04, correlating with the notable drop in enterprise value during the same year. Thereafter, it increases again to 15.75 in 2023 and slightly decreases to 15.31 in 2024. Overall, the ratio suggests varying market perception or valuation multiples applied to the company's earnings during this period.